Help with determining if deal will work for us and how to structure deal

[Davis Hardin]

Hello everyone,

I am about to buy my first vacation rental in Fernandina, FL! Can someone please help, things are starting to get real scary when figuring this out and I'd love some advice on how to make things better. The deal is a duplex right on the beach, zoned r-3, and in 2021 brought in $200,000 in revenue (was taken off the rental market when seller placed on mls). The offer we have right now is 1 million upfront (hard money lender or conventional loan, please help with finding which one is better) and seller financing the rest. Looking at it, we have no money to put down and nothing to place as collateral (seeing as it is our first deal). I want to make this work and buy and rent it but honestly would be find selling it to someone else or really bringing in investors. Please help.

[Michael Baum]

Hey @Davis Hardin, I think you are setting yourself up for failure. If you have no money, you certainly can't setup a beach front rental that grosses 200k a year.

I think it is time to take a step back and really look at how you are positioned. You can't afford to set up this property let alone buy it. You don't want to dive in just to smash your face on the shallow bottom.